Chen Siqi

vankochensq@163.com

SHENZHEN aims to become a new-generation world-class auto city, according to a three-year action plan released by the city’s industry and information technology bureau Thursday.

The new energy vehicle (NEV) industry will become a new economic growth engine of the city, the plan states.

By 2025, the city’s annual output of NEVs will exceed 2 million units and the ownership of NEVs will amount to 1.3 million units, as per the plan.

Shenzhen-produced autos will grab bigger shares around the world and the city’s annual output value of the whole auto industry is estimated to reach 1 trillion yuan (US$139 billion), it says.

By 2025, the city is expected to boast 300 supercharging stations and 600,000 charging poles.

A new-generation

auto city

A new-generation auto city refers to a city that develops an auto industry that is greener, more digital and automated, Yi Sanping, an official from the division of green manufacturing and materials of the bureau, explained.

It also requires the city to become a leader in NEV and intelligent connected vehicle technologies, as well as to foster the growth of leading enterprises within the auto industrial chain.

Shenzhen also sets a goal to create an industrial system that enpowers global manufacturing and sales of locally produced autos.

“We try to provide a Shenzhen solution to the development of the future global auto industry by proposing the idea to become a new-generation world-class auto city,” he said.

Solid foundation

Shenzhen boasts a solid foundation in the form of a comprehensive industrial chain.

When looking at the landscape of domestic automotive cities, Shanghai has Tesla, Guangzhou has Xpeng, and Hefei has NIO, while Shenzhen’s “trump card” is BYD.

According to BYD, its cumulative global sales of NEVs topped the world in 2022, exceeding 1.86 million units. In the first seven months of this year, the number surpassed 1.5 million units, with over 90,000 units sold overseas.

With BYD as the flagship, Shenzhen has gradually built a complete industrial chain covering areas such as complete vehicles, power batteries, motor control systems, autonomous driving, intelligent cabins, charging infrastructure, and the automotive aftermarket.

So far, Shenzhen’s lithium battery industry, the “heart” of NEVs, has formed a closed-loop industrial chain. According to data from the Shenzhen Battery Industry Association, there are over 4,000 lithium battery-related enterprises in Shenzhen, accounting for over 40% of the total in Guangdong.

“Shenzhen has built a relatively complete NEV industrial chain of R&D, production and sales. It covers everything from the electric motor, electronic control, and charging infrastructure to complete vehicle manufacturing,” said Li Xiaoyi, secretary-general of the association.

According to the local industry and information technology bureau, the output value of Shenzhen’s NEV industry reached 215.4 billion yuan in 2022, a year-on-year increase of 125.1%, and 874,700 NEV units were produced, growing 170% year on year. In the first half of this year, the output of Shenzhen’s NEVs and charging poles went up by 170.2% and 32.6%, respectively, year on year.

An intelligent future

If the first half of the automotive race is about NEVs, the second half will be dedicated to intelligent connected vehicles. The action plan has proposed to build Shenzhen into a pilot city in the development of a smart city and intelligent connected vehicles.

Shenzhen possesses a solid foundation in the electronic information industry and is an important R&D, testing, and manufacturing center for intelligent connected vehicles and key components on both a national and global scale, giving it a significant advantage in this field, according to Zhou Junmin with the China Development Institute.

“By using the term ‘new generation,’ the city aims to distinguish itself from traditional automotive cities and merge with new-generation information technology and strategic emerging industries,” Zhou said.